Industry Analysis & Industry Trends
Due to traditional Chinese dietary patterns and lower living standards, the routine consumption of dairy products is limited across the country. China is currently the third-largest dairy producer in the world, after India and the United States. However, per capita consumption of dairy products in China is less than one-quarter of the global average and lower than in many other developing countries. Moreover, dairy product consumption varies considerably across China. Consumption in rural regions is less than 10.0% of that in urban areas.
After strong and steady growth for more than a decade, China's dairy industries were severely affected by the melamine scandal of September 2008, when melamine was found in infant formula and other milk products.... purchase to read more
Industry Report - Starting a New Business Chapter
The entry barriers in this industry are medium, as new market entrants generally need higher levels of capital for investment in equipment and advertising. Consumer brand recognition and loyalty are high in China. New market entrants need to make large investments in advertising for building brand image. This increases the entry barriers in this industry.
The major foreign players have localized their production and gained advantages of lower costs over foreign players that only import into China. As such, the production localization process in recent years has increased the entry barriers for foreign competitors exporting to China to some degree.
Improvements in production technologies have increased the technology barrier for domestic players... purchase to read more